Why did Baku become an important city for the oil industry?

Baku’s status as a vital hub for the petroleum industry is rooted in its long history of oil extraction and its strategic location on the Abşeron Peninsula. While the presence of oil in the region has been known since antiquity—with surface wells providing oil for lamps as early as the 15th century—modern commercial exploitation began in 1872.21

Baku is widely considered the world’s first oil town, with the first wells drilled in the 1840s. By the beginning of the 20th century, the Baku oil field was the largest in the world, and Azerbaijan served as the leading global petroleum producer, at one point accounting for more than half of the world's total production.32

The city's importance is further sustained by:
* Infrastructure: Baku serves as a central hub for drilling, refining, and processing, linked by extensive pipeline networks.2
* Technological Expertise: The city is a major center for the production of oil industry equipment and hosts specialized higher education institutions focused on the sector.2
* Global Connectivity: Strategic pipelines, such as the Baku-Tbilisi-Ceyhan line, have facilitated the large-scale delivery of oil to global markets.3